PPC.L Regulatory News (PPC)

24 Aug 2007 07:03

Meridian Petroleum PLC24 August 2007 24 August 2007 MERIDIAN PETROLEUM PLC ("Meridian" or the "Company") Production Update Meridian Petroleum (AIM: MRP), the independent oil and gas exploration andproduction company with key assets in the USA and Australia announces aproduction update. Key Points - Orion 36 (75% Net Revenue Interest (NRI)) latest projected production rate -over 5 mmcfd from next week - Calvin 36-1 (68.75% NRI) production steady at around 50 mcfd - further actionrequired - Victory 1-21 (10% NRI) production during June/July showed a 65% increase onMay at 130 mcfd - Milford 36 (29% NRI) Extended production test to commence now Orion 36 isonline Orion Following the commencement of production on August 15, the extensive testing ofthe system with live gas and the final arrangements for commercial sales to CMShave been completed, as follows: - All lines have been pressure tested with no leaks or problems - Major plant and equipment, including the refrigeration unit, are alloperating effectively - The interconnect line with CMS has been blown clear with nitrogen with noissues encountered - The bottom hole pressure bomb has been dropped and testing is underway - Minor problems associated with metering and electrical communications wereencountered but have now been resolved Commercial sales to CMS are planned to commence today, slightly later thanexpected, but with the extra data now available and the success of the live gastesting programme, the Company now expects those sales to be greater thananticipated, with production building up over the weekend to in excess of 5mmcfd next week. At this rate of gas production, the Company also expects to benefit fromcombined liquid output of NGL's and Condensates of some 50 bbls/day. Theseliquids will sell for some 80 -100% of the West Texas Intermediate oil price. Calvin The 36-1 well has not yet responded to further treatment and production issteady at around 50 mcfd. Further action will be required in the coming weeksand the Company is currently reviewing the options to improve output. Victory 1-21 Ominex, the operator of Victory 1-21 has reported improved performance from thewell in recent weeks. Average production in June/July was over 130 mcfd whichwas a substantial improvement on the 80 mcfd averaged in May. Milford 36 As previously announced, the Milford 36 well will now be put on extended test toevaluate both the gas and oil production potential. Further Updates The Company will announce its 2007 Interim Results on 6 September and willprovide a further update on both production and plans for the Company's otherassets in the USA and Australia. Stephen Gutteridge, Chairman said: 'Our work over the past week to complete thetesting on the Orion facility has gone well, and commercial sales are nowprojected to be better than our initial expectations. We are now producing from3 assets with a fourth going onto extended test shortly. We are now lookingforward to building up our experience as a US gas producer, and the next stagein our development is to prioritise the best opportunities within our portfolioof assets for reinvestment of the cash generated by this production.' John Randell, who works for Wellmaster, Inc., is an independent contractor whomeets the criteria of a qualified person under the AIM guidance note for mining,oil and gas companies, has reviewed and approved the technical informationcontained in this announcement with respect to Orion. - ends - For further information contact: Meridian Petroleum Plc Ambrian Partners Parkgreen Communications Stephen Gutteridge, Chairman Tim Goodman Simon Robinson Richard Greenfield Erica Nelson +44 (0) 20 7811 0140 +44 (0) 20 7776 6400 +44 (0) 20 7851 7480 Tony Mason, CEO +1 713 599 1611 Notes to Editors About Meridian Meridian is an oil and gas exploration and production company with key on-shoreassets in the United States and Australia. Meridian is quoted on the AIM marketof the London Stock Exchange (ticker: MRP), and is headquartered in London, withoffices in Houston, Texas and Adelaide, Australia. This information is provided by RNS The company news service from the London Stock Exchange